Over Time, the Only Way Firms Can Continue to Earn

question 12

Multiple Choice

Over time, the only way firms can continue to earn positive economic profits is

• A) with government control over price.
• B) hire top entrepreneurs.
• C) if other firms cannot copy the unique aspects of the firm's product or service.
• D) by reducing diseconomies of scale.
• E) through increased competition.

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Definitions:

Positive Reinforcer

An incentive that, when introduced following an action, enhances the probability of that action occurring again.

Behavior Modification

A systematic approach to changing behavior through the application of the principles of conditioning, including both reinforcement and punishment.

Time-Outs

A disciplinary technique used to remove a child from an environment where inappropriate behavior has occurred, to encourage reflection and calm down.

Successive Approximations

A method used in conditioning and learning in which behaviors are broken down into simpler steps and rewarded progressively as they become closer to the desired behavior.